Extortionate Mortgage FEES & Missold Mortgage

[MarkieMark]

I cannot believe these extortionate fixed rate mortgage product fees that Halifax Charge.

 

Example:-

 

Halifax fixed rate mortgage for 3 years want £999.00 to setup the mortgage.

 

Halifax Mortgages - fixed rate mortgage up to 75% LTV

 

Is that daylight robbery or what? I sometimes wonder what the OFT, Trading Standards, FSA, FOS are all doing..... can they justify these costs?

 

I took out a 5 year fixed mortgage will Halifax only to find out that it was fixed for 5 years and 3 months, the mortgage was missold to me.

 

The mortgage taken out in July 2004 and the five year fixed rate would expire in July 2009 instead I was tied in October 2009. The interest rates has gone down to my advantage and this cut has not been passed to me.

 

5 YEAR FIXED IS NOT 5 Years FIXED HALIFAX advertised they add a few extra months to suit them..... I would recommend anyone who has taken a fixed rate with the Halifax to check fixed periods.

[jansus]

If it says 5 years then it should be 5 years from the date the mortgage is completed - and that should be in the Key Financial Indicators ?

 

Does the early repayment penalty extend past July 09?

 

If you have a complaint about this not being clear then complain officially and then try the FOS - I have never come accross this before so hard to comment.

[gizmo111]

I took out a 5 year fixed mortgage will Halifax only to find out that it was fixed for 5 years and 3 months, the mortgage was missold to me.

 

 

What does it say in your original offer about end dates? Some do go on further/less depending on the launch date of the product. They can charge what they like for arrangement fees you don't have to go with them

 

Why do you think your mortgage was missold?

Edited April 28, 2009 by gizmo111

[Jamusmcmoonface]

Gizmo's 100% right, the product fees for Fixed rate mortgage are usually around £1000.00 depending on the interest rate, you are paying for the benefit of keeping that rate no matter what interest rates do.

 

Regarding the 5 year part of the product again Gizmo is right you need to check your KFI (key facts illustration btw) as it will clearly give you the end date of the product usually under the section talking about Early repayment charges.

[mercyblue]

When did you make your first payment? I had what I thought a discrepancy on a 2yr fixed it said 26 weeks at xx amount when I asked about that was told the 26 weeks was from the original offer was made not when the money arrived.

So the offer was made in month1 money paid month2 and first repayment month3. Shows how things have changed I was ringing them to try to get 2months extra on the fixed rate not to come off it!

 

[MarkieMark]

First payment was taken out in July 2004 and the fixed period should have finished July 2009 but instead it finishes in October 2009.

 

The date of the fixed period on the mortage offer was 31st of October 2009. When I queried this with Halifax they told me that this the mortgage product and I had accepted their offer. I did not see their offer until I had received all the paperwork from the solicitor who completed the purchase of my property.

 

Advertising a 5 year fixed mortgage and sending offers to consumers which are longer is I believe is misselling.

 

I have looked at their website recently and noticed even today there fixed rate mortgages are still being sold in this way.

 

To me 5 Year fixed to me means 5 years fixed, it does not mean 5 years and 3 months fixed.

 

Lets see what they come back with.....

[MarkieMark]

The rate was fixed at 5.39 and if I had gone down to the standard variable rate from July 2009 I would be better off.

[gizmo111]

I did not see their offer until I had received all the paperwork from the solicitor who completed the purchase of my property.

 

You would have signed the offer before exchnage and ceretainly before they released the funds. A 5 year period can be up to 5 yrs 11 months.

[MarkieMark]

Sorry, I did not sign the offer.

 

Anyway, I see what they come back with.

[MarkieMark]

I,ll have to go down the route of Unfair Terms In Consumer Contracts Regulation and Consumer Credit Act 2006, 1974.

[bustthematrix]

I,ll have to go down the route of Unfair Terms In Consumer Contracts Regulation and Consumer Credit Act 2006, 1974.

 

MM, I think you MIGHT have a case depending on WHEN you took out your mortgage i.e. if it was BEFORE 30 Oct 2004.

 

KFIs = Key Facts Indicators did not become mandatory until Mortgage Day 31 October 2004 and the FSA has ruled at least twice (once regarding MEAFs and again regarding interest rate floors on tracker mortgages) that if an important term is not in the KFI but tucked away in terms and conditions which are almost never read, even by solicitors - THEY CANNOT BE ENFORCED by the lender.

 

So it depends, WHEN was the mortgage completed and what type of product illustration and mortgage offer (the two should be the same) did you receive?

 

It also depend on whether it was a straight 60 months (5x12) or '5 year fix' which unfortunately, can mean the deal ends a few months either side of exactly 5 years depending on the wording of the product. Some mortgage dates end at a fixed date irrespective of the start of the mortgage, other are connected to the date the mortgage actually completes.

 

Share some more facts and I might be able to assist.

[bustthematrix]

I,ll have to go down the route of Unfair Terms In Consumer Contracts Regulation and Consumer Credit Act 2006, 1974.

 

By the way, whilst UTCCR may apply to mortgages, I do not believe that the Consumer Credit Act did back then.

 

I believe mortgages may now come under the CCA but they didn't back then.

[MarkieMark]

Hi Busthematrix

 

Your comment:-

 

Some mortgage dates end at a fixed date irrespective of the start of the mortgage, other are connected to the date the mortgage actually completes.

 

If they are advertising a fixed rate such as fix years then its should be fixed for five years. Otherwise the advertisement is misleading. They need to make it clear that the 5 year fixed starts from the date of your first payment and not when the end period of their offer.

 

For example go to google and look at fixed rate mortgages with the Halifax

 

5 year fixed products - available on loans up to £7,500,000

 

Start rate

Rate endsFollowed by the Standard Variable Rate currently The overall cost for comparison isEarly Repayment ChargeProduct feeLTV % 4.44%31st July 20143.50% for the remainder of the mortgage term4.1% APR5% to 31/07/2010 4% to 31/07/2011 3% to 31/07/2014

£9990 - 60 4.99%

31st July 20143.50% for the remainder of the mortgage term4.3% APR5% to 31/07/2010 4% to 31/07/2011 3% to 31/07/2014

£4990 - 754.69%31st July 20143.50% for the remainder of the mortgage term4.2% APR5% to 31/07/2010 4% to 31/07/2011 3% to 31/07/2014

£999 60 - 75

 

As you will not from the above example. It clearly states 5 year fixed mortgage and the end period is 31st of July 2014.

 

Say you are buying a house and the legal completion was 15th April 2009 and first mortage payment was taken out 30th April 2009. The five year fixed rate should start from the date your first payment was taken out.

 

Halifax Mortgage Offer the end date 31st July 2014. The five year fixed rate rate should apply would you make the first payment and not few months after.

 

My fixed rate mortage was 5.39 and first payment in July 2004 therefore the 5 year fixed rate should have expired in July 2009. But on the offer they have added a few months extra. Interest rates have gone down and I am paying over the odds for the few extra months Halifax added.